Gulf Capital, a private equity based in Abu Dhabi, has acquired a strategic stake in Saudi Geidea, the leading provider of electronic payment products in Saudi Arabia, for $267 million.
"In a relatively short period of time, Geidea has emerged as the market leader in the financial technology sector in Saudi Arabia, paving the way for more financial institutions and businesses in the Kingdom to adopt Saudi Arabia’s Vision 2030 of achieving far-reaching economic prosperity and moving towards a cashless society," said Gulf Captial CEO Karim El Solh in a statement.
This deal is the fifth investment for Gulf Capital in the technology sector and is part of its efforts to develop the payment and digital financial transaction sector in the area.
The transaction comes just days after the launch of an initiative by the Saudi ِArabian Monetary Authority designed to promote financial technology in the Gulf region. Abu Dhabi, Dubai and Bahrain are also seeking to position themselves as centers of fintech.